Gain Capital has reported net income of USD4.4m, or USD0.11 per share, and adjusted net income of USD5.0m, or USD0.13 per share, for the second quarter ended 30 June 30 2012, on net revenue of USD45.7m.
“Our strong sequential revenues and expense performance was driven by a substantial increase in revenue from our retail FX business, demonstrating Gain’s ability to capitalise on a modest uptick in market volatility,” says Glenn Stevens (pictured), chief executive officer of Gain Capital. “At the same time, our Gain GTX institutional platform continued to increase market share, with revenue increasing fourfold from last year’s second quarter.”
In the second quarter of 2012, Gain’s retail business generated revenue of USD40.8m, compared with USD29.4m in Q1 2012 and USD54.1m in 2Q 2011. Total retail trading volume was USD340.8bn in Q2 2012, compared with USD385.1bn in Q1 2012 and USD357.2bn in Q2 2011.
“We continued the organic growth momentum in our retail business, increasing client assets nine per cent to USD320.2m as of June 30, 2012, launching a new Forex.com service in Canada and moving ahead with the Beta version of our new CFD offering, which is on schedule for full release in September of this year,” says Stevens.
In July 2012, Gain launched its Forex.com service in Canada, which will allow Canadian residents to trade more than 70 products, including 50 currencies, as well as energy, precious metals, agricultural commodities and equity indices.
Gain’s institutional business, Gain GTX, which serves institutional market participants, including hedge funds, banks and high-frequency trading firms, generated revenue of USD4.2m in 2Q 2012, compared with USD0.9m in 2Q 2011. Institutional volume was USD442.5bn, compared with USD97.4bn in 2Q 2011.
Gain GTX recently expanded its specialty execution desk through the recruitment of a 10-person agency desk. The New York-based team, which specializes in FX, options and emerging markets, more than doubles the size of Gain GTX’s execution desk and will expand the team’s client base and product coverage.
